The Toro Company (TTC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-24.9%

$82.86

vs $110.29 price

Levered DCF

$124.40

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

5.36

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.5×	19.92×	25.58×	24.92×	25.53×	26.83×	30.01×	22×
P/B	5.12×	5.38×	5.59×	8.18×	9.09×	7.93×	9.58×	8.96×
P/S	1.65×	1.82×	1.85×	2.45×	2.64×	2.62×	2.62×	2.29×
EV / EBITDA	14.72×	13.08×	16.27×	17.12×	17.24×	17.23×	20.03×	13.29×
Gross margin	33.4%	33.8%	34.6%	33.3%	33.8%	35.2%	33.4%	35.9%
Operating margin	10.9%	11.6%	9.5%	12.8%	13.1%	12.6%	10.4%	14.2%
Net margin	7.0%	9.1%	7.2%	9.8%	10.4%	9.8%	8.7%	10.4%
Current ratio	1.87×	1.81×	1.9×	1.58×	1.59×	1.67×	1.48×	1.68×
Debt / equity	0.72×	0.67×	0.77×	0.79×	0.66×	0.78×	0.82×	0.47×
Interest coverage	8.31×	8.62×	7.34×	16.13×	18.06×	12.86×	11.27×	19.54×
Dividend yield	2.0%	1.8%	1.7%	1.1%	1.1%	1.2%	1.2%	1.4%
Payout ratio	47.8%	35.7%	43.0%	28.4%	27.4%	32.7%	35.1%	31.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	21.8%	27.0%	21.8%	32.8%	35.6%	29.6%	31.9%	40.7%
Return on invested capital	16.1%	16.5%	13.1%	18.4%	21.1%	16.3%	16.7%	26.2%
Return on assets	9.2%	11.7%	9.0%	12.5%	14.0%	11.6%	11.8%	17.3%
Free cash flow yield	7.8%	5.6%	1.9%	1.4%	4.3%	5.2%	3.0%	4.6%
Earnings yield	4.3%	5.0%	3.9%	4.0%	3.9%	3.7%	3.3%	4.5%
Enterprise value	$8.1B	$9.2B	$9.4B	$11.9B	$10.8B	$9.2B	$8.8B	$6B
Net debt / EBITDA	1.27×	1.2×	1.68×	1.27×	0.57×	0.73×	1.25×	0.05×
Cash conversion cycle (days)	98	107	113	84	61	76	89	49